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What is your utility from investing in the stock

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Question - You are contemplating investing in a stock which has a beta of 1.6 and a standard deviation of 12.5%. The risk-free rate is 3.4% and the market risk premium is 6.4%. If your level of risk aversion (as measured by A) is 2.0, what is your utility from investing in the stock?

Reference no: EM133088447

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